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Westminster City cautions council: some grants and hospitality-tax revenue uncertain, recreation funding partly bridged
Summary
Staff told council that recent federal grant pauses put several projects at risk and that the Horton recreation commitment will leave the city bridging $800,000 with hospitality-tax bonding; hospitality-tax receipts were lower in 2024 than 2022.
City staff told the Westminster City Council at a planning workshop that several grant-funded projects face uncertainty after a temporary federal pause in grant disbursements, and that the city may need to reallocate or bond to keep projects moving.
Kevin told council that the presidential administration’s temporary cancellation of grant disbursements briefly jeopardized the city’s ability to pay Anderson Park contractors and other grant-funded work. “When the presidential administration canceled all grants, it include disbursements,” Kevin said, adding that a federal judge issued a delay and that the impoundment was subsequently withdrawn but that uncertainty remains for some awards that lack signed contracts.
Staff identified two grants they considered most at risk: the Land and Water Conservation Fund (LWCF) project, which staff said comes through the National Park Service and for which the city does not yet have a signed contract, and a state program they referred to as S C E and D (staff described that program as administratively difficult and currently “gone dark”). Staff said the city does have signed contracts for two Community Development Block Grants (CDBGs) and an ARC (Appalachian Regional Commission) grant, and that those contracts and awarded contractors remain in place.
Staff also described a $2,000,000 private commitment to the Horton Outdoor Recreation Complex: staff said $1.2 million of that commitment has been delivered in cash and that the city would need to bond about $800,000 through the hospitality tax as interim bridge financing. Kevin said hospitality-tax collections declined in 2024 compared with 2022; staff budgeted $200,000 in hospitality-tax revenue for July–December of the current budget year but said recent monthly collections may put that line under budget if current trends continue.
Staff warned that if the city loses grant funding for projects such as Anderson Park or other capital work, council will have to reprioritize which projects proceed and which pause. No formal council votes were taken at the workshop.
Staff said two CDBG awards and an ARC grant remain contracted and that the city has been awarded a contractor for an S C E and D award in the past but that administrative challenges have stalled that program. The presentation also noted other ongoing project funding sources and that staff will return with recommendations if any grant awards are lost or delayed.
